At the start of the US session, the Dow industrial average was higher, the S&P was near unchanged, and the NASDAQ index was down around -0.30%.
At 2:15 PM ET, the pattern remains the same. A snapshot of the market currently shows:
- Dow Industrial Average up 120 points or 0.31% at 39125
- S&P index unchanged at 5175.25
- NASDAQ index -47.79 points or -0.29% at 16219
The NASDAQ index has yet to see positive territory in three today. Meanwhile, the S&P indexes point with yet another all-time high close. All it takes is a positive gain today as yesterday’s closing level was at record levels.
Leading the Dow industrial average is 3M with a gain of 3.84%. Chevron, Home Depot, Nike, and Caterpillar are the biggest gainers.
The top five stocks in the Dow industrial average today
With major indices near record levels, are we in a bubble?
According to a Wall Street Journal article by James Mackintosh today in, the current U.S. stock market, despite its frothiness, does not appear to be in a bubble, especially when compared to historical precedents. He argues, the key arguments supporting this view include the
- Lack of widespread media mentions and Google searches are just not present
- Furthermore, the natural human inclination to be cautious when everyone talks about a bubble makes it difficult for one to inflate significantly.
Mackintosh acknowledges the challenges in predicting bubbles, noting that visible speculation and changing investor perspectives as prices rise can contribute to bubble formation. However, he observes that today’s market lacks the extreme speculation seen in past bubbles like those of 1929, 1999, or the more recent bubbles in China and certain U.S. sectors.
Despite high valuations and profits raising concerns among some experts, Mackintosh concludes that the market might be experiencing froth rather than a full-blown bubble, citing a less pronounced speculative frenzy across the broader market.